The median personal injury settlement in the United States is $31,000, but certain cases, like medical malpractice, have a higher average settlement [1]. A reasonable amount for one injured party may be inadequate for another.
Every personal injury case is different, and settlements are the same. A fair settlement offer depends on the extent of your physical injuries and financial losses. Working with an experienced attorney during negotiations with the insurance company can improve your chances of reaching a reasonable settlement agreement that covers all your needs.
The Purpose of a Settlement
Settlements are a way to resolve personal injury claims without going to court. While trials may provide more money, they also take longer to resolve, resulting in higher legal fees. If the jury decides against you, you must pay all your expenses yourself, so they can be riskier. As such, an attorney will negotiate with insurance companies first before filing a lawsuit.
With settlements, the plaintiff and their personal injury lawyer work with the relevant insurance company to receive compensation for their economic and non-economic damages, including medical costs, future medical care, and property damage.
During settlement negotiations, the lawyer demands a certain amount, and the insurance company makes a counteroffer. This process continues until the victim is satisfied with the financial compensation offered.
Types of Damages Covered in a Personal Injury Claim Settlement
For personal injury cases, victims can pursue compensation for economic losses and non-financial losses, such as pain and suffering damages. Common settlement damages include the following:
- Medical Expenses – Surgeries, medications, occupational therapy, and medical equipment are all included.
- Wage Loss – The time you spend off work and any future income losses are essential components of settlements.
- Physical Pain – Pain and suffering are difficult to quantify, but attorneys can use personal injury settlement calculators to identify their worth.
- Emotional Distress – Accidents are traumatic, resulting in depression, anxiety, PTSD, and loss of enjoyment of life. Attorneys will ensure this factor is included in settlements.
Factors that Determine a Reasonable Settlement Offer
What a reasonable settlement offer is depends on many factors, including whether the injury prevents the victim from leading a normal life and how clear liability is. These factors are difficult to calculate on your own, so working with an attorney can ensure that everything is considered in your settlement.
Severity of Injuries
How badly you were injured will significantly affect your settlement value. In serious accidents, your medical treatments will be more expensive. Undergoing long-term treatment will impact your quality of life, which should be respected in your settlement value.
Severe injuries, especially those that result in permanent disabilities, will typically receive a higher settlement. If you require invasive surgeries that have a long recovery time, this will also entitle you to more money than if you needed only minimally invasive outpatient procedures.
An experienced personal injury lawyer ensures that settlement amounts consider the long-term impact of your injuries, such as whether they prevent you from working and how long your recovery may take.
Medical Bills
Your current and future medical bills will be calculated and included in your personal injury claim. This includes ambulance transport, hospital stays, physical therapy, and medication. An attorney can consult with physicians and experts to determine what medical treatment you will need in the future.
Lost Wages and Earning Capacity
The time you spend off work and any future losses in earning capacity will be included when determining reasonable settlement offers. For example, if you become permanently disabled in a car accident, a personal injury attorney can assess your future earning capacity based on your previous wages and how you may have advanced in your career if you weren’t injured.
Pain and Suffering
Your physical pain, emotional suffering, and loss of enjoyment of life should also be included in a settlement offer. However, this can be harder to quantify as no apparent financial losses exist.
An experienced personal injury lawyer will help you explain the impact on your life through personal statements and testimony from loved ones. They will also use injury calculators to calculate your pain and suffering.
Liability and Comparative Negligence
How the accident occurred will influence your personal injury claim. Insurance companies and courts use comparative negligence to assign degrees of fault to each party in the accident.
If the other party was primarily responsible, you will receive more than if both parties shared the blame equally. Blame is assigned by using evidence like police reports, surveillance footage, eyewitness testimony, and expert opinions to understand exactly how the accident happened.
In most states, the percentage of blame you share will proportionally reduce your settlement.
For example, if you were 10% responsible, you would receive 10% less than if you were entirely blameless. Insurance companies will try to place more blame on you, making it vital that you work with a skilled attorney who can ensure you are not considered more responsible than is fair.
Insurance Policy Limits
Your settlement is limited by how much insurance is available. If the at-fault party has an insurance policy with low limits, you will receive less, even with high economic damages.
In a car crash with an uninsured motorist, no insurance may be available, especially if you do not have a policy to cover your expenses. As such, your lawyer may be severely limited in how much they can request, as the money must come from the at-fault party rather than an insurance provider.
Evaluating a Settlement Offer
A fair settlement offer depends on many factors, so it’s helpful to have an attorney evaluate your offer to determine whether it aligns with what would be expected in a similar case.
Reviewing Medical Records and Bills
Including all medical expenses related to the accident is essential to getting a reasonable settlement that covers all your costs. Review your medical records to match your bills to your injuries, and double-check that they are accurate.
Calculating Lost Wages and Earning Capacity
Keeping accurate records of your lost income due to rehabilitation will help ensure your settlement reflects the full financial impact of the accident. To calculate your loss of future earning capacity, include your salary, benefits, and any potential promotions you missed due to your injury.
Suppose you need occupational therapy to return to work or must be retrained for a different occupation because of your injury. In that case, your attorney will consider your earning potential at this new job and how long you will spend in training. This can be included in your settlement.
Assessing Pain and Suffering
Pain and suffering damages are some of the more challenging elements of personal injury settlements because they are highly subjective. However, an attorney can use several methods to quantify these costs.
The most common method of calculating these damages is the multiplier method. This method multiplies the economic costs based on the person’s injuries. The multiplier is usually between 1.5 and 5, with 5 reserved for severe injuries leading to long-term disability.
Another standard method is the per diem method, which multiplies a person’s daily earnings by the number of days they experience suffering. For example, if a person earns $400 a day and has to take 100 days off work, they may be entitled to up to $40,000 in pain and suffering.
Insurance companies will use algorithms to calculate expected pain and suffering, but these are designed to reduce your settlement rather than fairly depict your losses. A lawyer can provide a more accurate view of how your injuries have impacted your life, including compelling evidence like your testimony and expert opinions from medical professionals.
To support your case for additional damages, you can keep a record of your recovery process. Include your pain levels, activities you have not been able to complete, and a list of your appointments to show the inconvenience of the injury in your everyday life.
Considering Future Needs
Personal injury settlements should also cover your potential future needs. This can include long-term medical care, rehabilitation, and assistive devices like mobility aids.
Even durable medical equipment like custom prosthetics will need regular maintenance and may need to be replaced. Your settlement should consider this so you do not have to pay out-of-pocket for these costs.
An attorney will consult with experts who can provide testimony about your prognosis and what challenges you may face in the future. This will offer compelling evidence that may positively impact your settlement amount.
What a Personal Injury Lawyer Can Do for You
Working with an experienced personal injury law firm ensures you are treated fairly by the insurance provider and all your needs are considered in a potential settlement. They will advocate for you and protect your legal rights throughout the proceedings.
Additionally, attorneys have experience in negotiating with insurance companies. They will be familiar with a typical settlement in your case, ensuring you don’t receive a lowball offer.
Evaluating Settlement Offers
The early settlement offer from the insurance provider is typically lower than what you deserve. A personal injury attorney will assess whether a settlement is fair based on your circumstances and years of experience working with injury victims.
A lawyer will calculate what would be expected in a fair settlement offer and advise you on whether you should ask for more, considering factors like comparative negligence and the expenses associated with negotiating.
Negotiating with Insurance Companies
Working with an attorney gives you a better chance of maximizing your settlement. Because lawyers know typical settlements in cases like yours, they will know what to ask for and what evidence is necessary to support your claim.
Lawyers are familiar with the many tactics that insurance companies use to limit your settlement offer. These tactics can include undervaluing your injuries, arguing that you had a pre-existing condition, or claiming that some expenses were not medically necessary.
An attorney will use evidence to counter these claims, including opinions from medical professionals familiar with injuries like yours.
Law firms also protect your rights throughout the negotiation process. They will communicate with insurance companies on your behalf so that you do not unintentionally damage your case by admitting fault or underplaying your injuries.
Attorneys will also review insurance policies and ensure that insurance companies follow their guidelines rather than manipulating you into accepting less than what you deserve.
Litigating Your Case
Most personal injury claims are settled through negotiations rather than a personal injury lawsuit. However, if the insurance provider refuses a good settlement offer, we will file a lawsuit and take your case to trial.
Personal injury laws are complicated and vary by jurisdiction. Lawyers will be familiar with your state’s laws and can ensure that all filings are correctly submitted, avoiding costly delays. Additionally, they will present your case in front of a judge and jury, sharing your story and questioning witnesses according to legal procedures.
Secure Expert Legal Representation!
Personal injury settlements are meant to help injured parties be in a better financial position during their recovery, but insurance companies don’t want you to recover compensation. Personal injury attorneys will ensure that all your expenses are considered in a settlement so that you have the funds you need to recover.
Rosenfeld Injury Lawyers is a nationally recognized law firm that advocates for victims so they receive what they deserve in a settlement. We work on a contingency fee basis, meaning that our legal fees are deducted from your settlement offer; you owe us nothing unless we win your case.
Every personal injury is unique, and there is no set settlement for an accident. To receive personalized legal advice during a free consultation, call Rosenfeld Injury Lawyers at (888) 424-5757 or use our online contact form.
References: [1] Forbes